It Just Announced two new watches, two new ipads and a work out service we got all those details for you and later, weve got two big ceo interviews billionaire tilman joins us on state of business and whole foods ceo will discuss how covid has changed the consumer and the grocery business he says forever. Power lunch starts right now yes, it does thank you. As we mentioned, were one day from the fed decision. Another big event looming, 49 days from now is the president ial election. What do our fed survey respondents think of the candidates policies steve is here with those details. Steve. Thanks very much. Some very surprising results from this survey as to the attitudes towards candidates really split along a will the of interesting different lines here we asked who has the best policies for the nation, the stock market and the economy here are the ruesults 60 of our 37 respondents said joe buyiden has the best policy maybe you can find that the reasons for those differences in some of the individual issues. Vice President Joe Biden is rated higher on the issue of trade, job, handling the recovery from the covid19 shutdown President Trump is rated as having better policies for taxes and for bid regulations. All of those are the most helpful for the stock market President Trumps rating has sunk to the lohse elowest level hes minus 17. Thats the lowest level we have seen for the first three years we have been polling President Trump on his Approval Rating, he has substantially above water. More like that 29 you see on the left side of your screen since the covid 1 c9 crisis hit hes been well below and at the lowest level in this survey. One other fact we have, one other data point is 86 say that a contested election is a risk to the stock market right now. Steve, can i ask you a question there im having trouble squaring two numbers i saw. One was the net economic approval for trump which was minus 17 and yet in the other part of the survey you said trump has a 50 to 47 edge over biden on best policies for the economy. I dont get it whats the difference . I cant square it these are differences that are just when they are put side by side, who has the best policy for the economy. Biden has a slight President Trump has a slight edge. I think if i had to guess, this net economic Approval Rating is tied closely to his handling of their views of his handing of the covid19 crisis. You dont see the numbers there. He has a 72 disApproval Rating on handling the covid19 crisis. Thats my best guess in terms o of why the net approval is so negative on the economy but overall i think this group is free market group. Less inclined toward some of the policies of vice President Joe Biden and the Democratic Party i think thats why he enjoys a slight edge. Remind me who these people are that we surveyed 37, this time around fund managers, strategists and economists thanks. Our next guest says buckle up for more volatility as we head toward the november election what would a trump or biden win mean for the market. I was with my wifes parents, my motherinlaw a couple of weeks ago and she said im really, really worried about my money if joe biden wins am i going to lose all my money. I said youre not going to lose all your money greg branch, what would you have told her right i think youre right the survey came out as we would anticipate the biden team stated their intent to raise the Corporate Tax rate they already stated their intent to reconsider taxization on earnings that are repay tri ure repatriated from foreign entities theres no question that in a biden victory, there would be a short term reconciliation of the market to reflect the outlook of lower profitability for the company. Has the market already december counted that or in part in greg . Some would say it has i would say the choppiness is evidence it hasnt yet i would say that the bloated valuations in some sectors is evidence that it hasnt yet. The market will really be able to concentrate with certainty on a decreased profit outlook across the board due to higher Corporate Tax rates. Tell me whether you agree with what greg just said which is basically that a biden presidency with higher taxes will mean lower net profits for corporations and that all of the things being equal would be lower, slightly or more majorly returns for stocks potentially but necessarily first and foremost youre right. The volatility will increase in fact, years when we had the president ial election, s p returns about 400 basis points less than nonpresident ial years and the average is about 6 . Just exactly where were sitting today. Ultimately, i think it comes down stocks. The good news is perhaps bad for this year is majority of the stocks underperform the market to date. Average stock is down 3 year to date relative to s p 6 return i think there are a lot of dispersions and opportunities for people to capitalize on. Last point on margin, i would say a lot of Companies Went through recession like costs pivoting, rebooting that i think will certainly help them come back with this operational they didnt have before when Revenue Growth comes back. They might be taxed at higher rates but margins might do a little better. Let me turn to where steve left us. The possibility of a contested election, a close election because of the mail in ballots or irregularities of one sort of another becomes contested and throws the country into a period of suspended animation or at worst, some kind of constitutional crisis. How damaging would this be for equities any uncertainty is very damaging we have in the business of predicting the future and if you cant put in what your input is as it relates fopolicies, i thi its an anchor on the stock market and the multiple. That being said, the one thing we have going for us and i think the odds in our favor is the vaccine. I think its the ultimate factor people need to watch you have over 38 different vaccines and human trials right now. Youve never had more people, more money, more urgency, more intellectual power focused on one goal i think the odds are with us i think it will definitely be a turning point for the market let us hope and pray you are right. Thank you. Kelly. The apple event just wrapped up a few moments ago lets go to josh lipton for the highlights that about as much as you could possibly fit into about 60 minutes. Lets see if i can get to it on the Services Side apple announcing apple one this is bundle of services, cloud storage, music, apple tv plus apple arcade, their gaming service, apple news, Apple Fitness plus ill get to that in a sec in one bundle the coast herean individual plan, 14. 95 per month. The family plan 19. 95 per month available this fall. 30 days for free also can apple up sell its fans maybe you only use cloud storage. Can apple hook you into the more pricey bundle instead . New services Apple Fitness plus thats for the watch its to get you fit. You can choose a work out from this catalog of videos and you get a summary of your metric, calorie, aver rage heart rate many of the work outs will require no equipment peleton did move lower the price, 9. 99 a month. That will be available by tend of the year. New hardware we did get new watches including the series 6 thats new case, new bands, new watch faces. On the inside, interesting a new Health Sensor which will let users measure their blood oxygen levels right from their wrist. Thats a key vital sign. Thats also another watch. Called the watch se. Also going to watch the new at 279. Josh, thank you very much coming up, financials the worst performing sector and that is thanks, if you can call it thanks, in part to city Group Falling as reports say regulators are targeting the big bank over risk management. The whole food ceo says many people are done, done, done with Grocery Stores he joins us right after the break to discuss how his 500 store chain has adapted postman demonstratic much more power lunch from the Grocery Store after this the United StatesPostal Service is here to deliver your packages. And the peace of mind of knowing that important things like your prescriptions, and ballots, are on their way. Every day, all across america, well keep delivering for you. Every day, all across america, thats it. Im calling kohler about their walkin bath. [ sigh ] not gonna happen. My name is ken. How may i help you . Hi, im calling about kohlers walkin bath. Excellent happy to help. Huh . Hold one moment please. [ finger snaps ] hmm. The kohler walkin bath features an extrawide opening and a low stepin at three inches, which is 25 to 60 lower than some leading competitors. The bath fills and drains quickly, while the heated seat soothes your back, neck and shoulders. 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Thanks the pst go its good to be here i want to begin with your thoughts about the Grocery Store. That headline wasnt anything that i said. All i said was that many people have begun to more people are shopping online than they were precovid. Thats a fact. As covid disappears as a vak vaccination comes along, more people will return to their old patterns probably will not go back to where we were before there will be more people shopping online than precovid it will be backed pretty much the way it was a year or two from now thats not like youre saying this is the end of the Grocery Store. Some people got turned onto internet shopping and they may stick with that. Exactly right is that no . Thats correexactly correct. The headline is not something i said let me ask you about something i experienced first hand, since amazon has taken over whole foods, its probably the only place ive experienced sticker shock. I said i cant believe how inexpensive this has gotten and i cant believe im saying that. I grew up thinking it was whole paycheck could you talk about whether thats sustainable especially with all the Grocery Price inflation were see of late and what amazon has done to contribute to that, if anything . One of the reasons whole foods wanted to be, to merge with amazon was because amazon thinks long term amazon takes a long term perspective and that has allowed us to cut prices we made three significant Price Reductions since the merger. We have a fourth were beginning now. Were going to continue to lower our prices cut our costs, lower prices. Get more business, lower prices. I think were in a circle now. Amazon is enabling us to do that we love that about amazon. Could you elaborate on that when you talk about cutting costs. In other parts of the Food Industry and namely ive seen this with fast food lately, theres a lot of price inflation. When i asked people about it, they say its minimum wage and supply chain pressures they face because of coronavirus you name it. What is it that youre able to do to cut costs on tgrocery side are these other costs and is it sustainable because of some of the shortages we have seen this year the way you cut costs is you have to work on every detail of your business. You have to look at where youre spending your money. What amazons brought new critical tools to whole foods to help us think it through, to cut down our shrink, cut down our spoilage, cut down our theft thats occurring they are helping us to rethink the way we organize our stores to a certain extent. Were just bringing a more critical eye to our costs at whole foods. We also did raise our bolabor, r wages. We went to a 15 minimum wage starting place thats forcing us to be more productive the net result is we are looking our costs. Were lowing our nga cost. Were marrying our Technology Close to amazon so we dont have to devote as much resource to technology because amazon is doing so much in the area for us john, tyler mathison. Good to see you again. I have to say you guys have number one p, the best bananas in the world and the best house brand orange juice ive ever tasted we had on earlier this week, yesterday, arthur blank of home depot, the founder of it we were talking about the 50th anniversary of Milton Friedmans famous sessay that said the sole business of business is profit he said its people, purpose and profit if you dont work on your peopl and purpose, you wont have the profit id like you to get into that argument that friedman made 50 years ago. What did you think i did debate milton in the magazine 15 years ago. Its an unnecessary powe lar lay its and its profits and people and purpose. They are all connected together. This idea they are opposite or polarity there is unnecessary. In fact, all are important profits are important. Its not a zero sum or something some youre care more about people and make less money or youll be purpose driven and youll be less profitable. Ar thundershower arthur is right. We have to run our business that were fulfilling our higher purpose. Were creating more value for customers and making more money. These things are not incontradiction with each other. They all Work Together i think milton believe that. He was worried about socialism and worried that profits would be taken away. I never argue for that they are important we need to make money. Business needs the make money. Thats how we make progress in the world. Profits get reinvested for customers. I have one final question if i could ask you again about the experience in whole foods. What happens if the buffets dont come back. You really have been a magnet for people who want the salad bar. They want the hot bar, the o live bar whats that experience going to look like in the future . I do i this they will come back. I it might not come back next week obviously, the alternative is more service thats more expensive alternative. Ultimately, well do whatever it takes to satisfy our customers and create the value as you hinted, some stuff still up your sleeve we look forward to hear whats coming up. Thank you so much for joining us today the congrats on the book thank you r have very much ty still ahead, take a look at nikola sinking again today as the sec looks into allegations from the short seller firm the stock down more than 30 in a week 21 ipos have doubled since they began trading this year which ones are the traders buying theyll tell you after this quick break. The lexus es. Every curve, every innovation, every feeling. A product of mastery. Lease the 2020 es 350 for 359 a month for 36 months. Experience amazing at your lexus dealer. But inside every etf. There are untold hours of careful construction. Infinite what ifs . And contingency plans. Creating funds that help target gaps in client portfolios. Tap untapped potential. And strengthen confidence in you. Flexshares. Powered by over a century of investment expertise before investing consider the Funds Investment objectives, risks, charges and expenses. Go to flexshares. Com for a prospectus containing this information. Read it carefully. This was the theater i came to quite often. The support weve had over the last few months has been amazing. Its not just a work environment. Everyone here is family. If you are ready to open your heart and your home, check us out. We thought for sure that we were done. And this town said not today. Welcome back snow flake pricing its ipo this evening in whats expected to be the highest valuation ever for a Software Company and its not the only popular ipo this year recent from big commerce and berkeley lights surging higher since their debut. To discuss the red hot ipo market your trading nation team today. Gina, walk us through what youve seen so far this year what we expect to see for the rest of the year and why dont you linger a bit on snow flake if you look at what happened, the ipo market ground to a halt in april its driving valuations sky high as you said, we are probably going to see some of the largest ipo valuations in history. Snow is an interesting one if you look abroad, you look at ant financial which is backed by ali pay that had 17 trillion worth of transactions last year just in china compared to 8. 8 trillion for visa, this is will a massive ipo in hong kong they have a lot behind them. The valuations arent going to be great for every one i know you dont participate in ipos at your company but you must have a perspective here suddenly exciting its important to look at the ipos to get a gauge on its sentiment in the market and the new work at home, stay at home environment. I heard ginas caution on planitir they have a focus on public right now but making a big push into prooif pch watch out for them peter teal is behind them. The other one is unity software. They are not a video game studio they are a platform for developers to create and distribute content they claim that their engine was represented in 500 of the top thousands games in apple and grade school goog googles play store. Possibly good for the company. They pull back to support and try to poke through 100. Id say wait for them to come out and trade them its not like the 2,000 days